Retirement

Social Security Increases Benefits by 0.3% for 2017

More than 65 million Americans will see the 0.3% increase in their payments beginning in January of 2017.

October 18, 2016

The Social Security Administration has announced a cost of living adjustment (COLA) to recipients’ monthly Social Security and Supplemental Security Income (SSI) benefits. More than 65 million Americans will see the 0.3% increase in their payments beginning in January of 2017. The increase is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers and was put in place to ensure the purchasing power of these benefits isn’t eroded by inflation.

This figure is a slight increase from 2016 since there was no increase for retirees last year. According to the Social Security Administration, retired workers on average collect $1,355 a month in Social Security payments, or roughly $16,260 a year. Raising the COLA 0.3% will add about $5 a month to those payments, or $60 for the year.

Keep in mind, all federal benefits must be direct deposited. So if you haven’t already started receiving benefits, you need to establish electronic transfers to your bank or financial institution. Contact your financial advisor for more information.